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Promoting Innovation And The Deployment Of Advanced Telecommunications Services To Businesses

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  • DAVID J. GABEL
  • KENNETH GUANG‐LIH HUANG

Abstract

This paper examines the concomitant effects that competition, regulation, market characteristics, and corporate ownership have on the deployment of advanced telecommunications services (ATS) to business customers through the econometric analysis of a rich data set that identifies the competitive, regulatory, and economic climate for each incumbent’s wire center in the United States. The authors conclude that local competition, inter‐LATA (local access and transport area) approval by the Federal Communications Commission, and high unbundled network element price to embedded cost ratios have positive impacts on the deployment of ATS, while voluntary federal price cap regulation and location in a rural area have negative impacts. (JEL L51, O32, M21)

Suggested Citation

  • David J. Gabel & Kenneth Guang‐Lih Huang, 2008. "Promoting Innovation And The Deployment Of Advanced Telecommunications Services To Businesses," Contemporary Economic Policy, Western Economic Association International, vol. 26(2), pages 229-247, April.
    • Handle: RePEc:bla:coecpo:v:26:y:2008:i:2:p:229-247
    DOI: 10.1111/j.1465-7287.2007.00064.x
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    References listed on IDEAS

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    1. Douglas Staiger & James H. Stock, 1997. "Instrumental Variables Regression with Weak Instruments," Econometrica, Econometric Society, vol. 65(3), pages 557-586, May.
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    3. Greenwald, Bruce C & Sharkey, William W, 1989. "The Economics of Deregulation of Local Exchange Telecommunications," Journal of Regulatory Economics, Springer, vol. 1(4), pages 319-339, December.
    4. Greenstein, Shane & McMaster, Susan & Spiller, Pablo T, 1995. "The Effect of Incentive Regulation on Infrastructure Modernization: Local Exchange Companies' Deployment of Digital Technology," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 4(2), pages 187-236, Summer.
    5. Bourreau, Marc & Dogan, Pinar, 2001. "Regulation and innovation in the telecommunications industry," Telecommunications Policy, Elsevier, vol. 25(3), pages 167-184, April.
    6. James E. Prieger, 2003. "The Supply Side of the Digital Divide: Is There Equal Availability in the Broadband Internet Access Market?," Economic Inquiry, Western Economic Association International, vol. 41(2), pages 346-363, April.
    7. James E. Prieger, 2003. "The Supply Side of the Digital Divide: Is There Equal Availability in the Broadband Internet Access Market?," Economic Inquiry, Western Economic Association International, vol. 41(2), pages 346-363, April.
    8. Oecd, 2002. "Access for Business," OECD Digital Economy Papers 67, OECD Publishing.
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    Cited by:

    1. Jan Krancke & Christoph Müller, 2011. "Innovationen in regulierten Netzindustrien," Schmalenbach Journal of Business Research, Springer, vol. 63(64), pages 32-51, January.

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    More about this item

    JEL classification:

    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics

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